All Forum Posts by: Eddie Liz

@Steve Chaparro Live-In Flipping's a great strategy for 10 years! Buy at a discount (70-80% ARV minus repairs), aim for $50k+ profit per flip. Live there 2 years to skip capital gains tax ($250k/$500k free). Use FHA/VA loans or Hard Money loans, save for repairs, and pick growing markets. Be ready for reno chaos. Thoughts on your first target?

Hey Roland,

Appreciate the insight! The ARV minus repairs approach is exactly what I’m targeting. My plan is to buy distressed at around 70-80% of ARV, force appreciation through renovation, and hold for at least two years to maximize the tax-free gain.

For my first target, I’m looking at:

Purchase Price: ~$600K for a distressed 2/1, ~1,000 sq. ft. home with a 2 car garage
Renovation Budget: ~$200K
Final Product: Expand to 3/2, ~1,500 sq. ft. + convert garage into a 400 sq. ft. 1/1 ADU
Projected ARV: ~$1M+
Appreciation Assumption: ~4% per year

Financing-wise, I'm leaning towards a construction to perm loan. FHA/VA loans could be useful for some, but in LA's price range, the loan limits are tight. Hard money's an option if the right deal comes along, but I'd prefer to keep holding costs down.

And yeah—reno chaos is a given. The key is keeping timelines tight and contingencies built in. From your experience, what’s been the biggest challenge in executing this strategy?

-Steve

Hey Steve,

I am finishing up a project similar to what you outlined. I purchased a 3Bed/1Ba in Long Beach and built a 1Bed1Ba ADU to force appreciation. Feel free to pm me. I can provide you with my costs of owner builder expenses to build new construction and share contingencies that I ran into.

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Los Angeles County, California

Hi Everyone!

First time poster.

Back in July

my wife and I purchased with a SFH that contained a garage conversion. When we purchased the property we inherited the tenants that were leasing out the garage conversion. They were on a year lease and paying above the market rent for the space. Their lease just ended and they notified me they will vacate.

My wife and I cannot make the mortgage payment with out the rental income. What are some options for MTR rentals for this space. I cannot use Airbnb since it turns out the conversion is unpermitted and my city requires STR registration. (I was communicated that their was a kitchenette permit pulled for the garage by my real estate agent during the purchase process. )

Any suggestion for temporary solutions for this would be greatly appreciated.

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All Forum Posts by: Eddie Liz

Eddie Liz has started 1 posts and replied 2 times.

Post: I'm considering employing the Live-In Flip strategy over the next 10 years - Advice?

Post: App/Platforms to list garage conversion